New State Energy Laws Passed December 2016

Requires electric providers to produce 15 percent of their power from wind or other renewable sources by the end of 2021, up from 10 percent now.

Maintains, for now, the “net metering” program that allows customers to reduce their energy bills by generating power at home.

Creates a new “green pricing” program for customers who want more—or all—of their electricity to come from renewable sources.

Sets a goal of meeting 35 percent of Michigan’s energy needs through renewable power and energy efficiency by 2025.

Maintains the requirement that utilities reduce energy waste by at least 1 percent each year, lifts a cap on how much they can invest in waste reduction programs and increases financial incentives available to utilities for going above and beyond the energy efficiency standard.

Requires utilities to undertake “Integrated Resource Planning” to guide their investments so they meet long-term energy demand at the least cost. These plans would go through an extensive review and compare both generation and demand management options to meet future demand.

The Public Service Commission is tasked with establishing a new rate under the green pricing program. It also is tasked with designing a new rate structure for net metering customers in the future. The new rate design will be crafted through a public process over the next year, and then be implemented in the spring of 2019 at the earliest. A new rate design could combine net metering with time-of-use pricing—in which electricity is more expensive at times of higher demand—to better reflect the value of energy when it is generated and used.

We want to thank all of you who contacted your lawmakers and our clean energy allies in Lansing for their tireless work on this effort. There is still much work ahead to make sure these laws get implemented well and to prevent efforts by some in the legislature to roll them back. We will work to keep you updated on this and opportunities for action - be sure to Join Us to receive updates.